Happy new year
Jan 02, 2023
2022 was a true exception from a historical perspective. Only 5 times within the last 100 years the S&P 500 and US Treasury bonds have been falling in tandem. This makes 2022 the worst year for a USD based balanced portfolio with 60% equities and 40% bonds since 1931. According to the headline of the FT published on the 31th of December, global stocks and bonds lost more than 30 trillion USD in market value last year. The more restrictive monetary policies by central banks around the world are the main culprit for this regime change as rising interest rates take their toll on lofty valuations in different asset classes and segments of the market. During the coming days, we will show in our daily graphs our view on the financial markets and the resulting portfolio positioning for our clients. It is indeed periods like the one we are experiencing now that our long term investment approach based on quality value investing makes shows resilience and creates foundations for solid long term returns.